Trump Poised to Reduce Tariffs on Canada and Mexico Amid Trade Tensions

President Trump's administration is on the verge of announcing reductions in tariffs on Canada and Mexico, according to U.S. Commerce Secretary Howard Lutnick. Amid escalating trade tensions and retaliatory tariffs from both neighboring countries, Lutnick indicated ongoing negotiations focused on curbing fentanyl imports could lead to a compromise. However, skepticism persists regarding the lack of official communication from Canadian officials and Trump’s firm stance on trade relations.

U.S. Commerce Secretary Howard Lutnick has suggested that President Donald Trump is likely to declare a reduction in tariffs on Canada and Mexico soon, with an announcement expected as early as Wednesday. During an interview with Fox Business Network, Lutnick noted the ongoing communication from both Canadian and Mexican officials, who are eager to demonstrate commitments to combat the influx of synthetic opioids, particularly fentanyl, into the United States.

Despite Lutnick's optimistic outlook, Canadian Minister of Foreign Affairs Mélanie Joly expressed skepticism, stating that her office had not received any direct communication about plans to cut tariffs. This situation arises as both Canada and Mexico have initiated retaliatory import levies in response to the 25% tariffs imposed by the U.S., which went into effect on Tuesday.

"It seems probable we'll be announcing a deal soon, where if Canada and Mexico take significant steps, Trump will reciprocate," Lutnick commented. He predicted that the tariffs would not merely pause but would see actual reductions. He emphasized that many discussions are underway, although the ultimate decision rests solely with President Trump, according to Joly.

Contact was reportedly made between Lutnick and Ontario Premier Doug Ford, aiming to warn against Canadian retaliatory actions, which some say could escalate tensions further. Earlier on Tuesday, Prime Minister Justin Trudeau criticized Trump’s tariffs, labeling them as a "very dumb thing" and committed to fiercely protecting Canada's economy against what he termed a potential trade war.

In a sharp counter to Trudeau's remarks, Trump took to Truth Social, asserting that Canadian retaliatory tariffs would prompt corresponding increases in U.S. tariffs, intensifying the trade standoff. Trudeau rebutted claims that this could lead to Canada being absorbed into the U.S., affirming that Canada would never accept becoming the "51st state."

The trade confrontation is further complicated by escalating tensions with China, following the imposition of new tariffs on Chinese imports by the U.S. which have already been met with retaliation from Beijing. As the trade war unfolds, both neighboring countries and China are navigating a precarious landscape of diplomatic and economic responses.